Strategic Advantages of the

Worlds Best 3 companies in

the 1990s
PR E S E N TE D BY:
NEERAJ SHARMA
RUSHIN SHAH
RUTURAJ NAGARE
URMI DAS
R A C H I TA J A I N
R E B E C C A M A TH A I

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Takeda
Pharmaceutical
Company limited.

Strategic advantage of Takeda

1.

Focus on improvement
Success factor of Takeda is in improving the products.
E.g. Takeda improved its 4 products in a span of an year in 1988.

2.

Reliance on R & D Base

i.
ii.
iii.

Takeda is among the top 40 companies

It has 46 R&D drugs- (42 of its own and 4 under licensing)
It spends about 6.6 % of revenues earned on total sales and theres a move to
strengthen it by further investment of 30,000

Strategic advantage of Takeda

3.

Better management
Streamlining of its organization by
i.
ii.
iii.
iv.
v.

4.

Reinforcing effective interaction

Cooperation &
Communication at all levels to ensure effective planning of business activity.
Being 6th or 7th largest company the company has only 1 brand in the list of Top 50
brands.
Takeda relies on Joint Ventures rather than undergoing mergers.

Insufficient capital
According to the Shibei Konish, President their capital is insufficient to make waves
in the overseas market.

Merck & Co.

Strategic advantage of Merck &

co.
1.

Prescription support winner

Leading as a result of maturity of the products in the market .
Fact- 5 % brands of Merck in top 50 brands list .

2.

New product strategy

i.
ii.

3.

It has 98 R&D drugs- (75 of its own and 23 under licensing)

This provides high leverage for existing & mature products.

Image building
i.

Major strength which pays off in the form of quality personnel, quality products
,goodwill.

Glaxo

Strategic advantages of Glaxo

1. Market-Driven Strategic Base Supported by:
I.
Continuous management development
II.
Size and quality of Sales force
III. Aggressive attitude of outstripping competition
IV. Concentrated focus on markets and products
V.
Priority investment in advertising
VI. Quick response to potential market needs
VII. Market driven policies
(Glaxo thus heading for No. 1 position)

Strategic advantages of Glaxo

2. Speedy Commercialization of R&D Efforts
40 R&D drugs
21 own drugs
19 under licensing
Glaxo invested around US $400 million in R&D

3. Business Growth through Products and Market

Glaxo believed in capitalizing on existing products, one-third profits were earned from
Zinetac and one-third from launch of new-products every year
They relied heavily on their products quality

Strategic advantages of Glaxo

4. Image building activities They aimed to be ranked No. 2 after Merck &Co.
by constructing their own pharmacy building
5. Focus on profits, thus increasing bottom-line Even though it ranked in No.
2 in 1990, profits in 1989 showed that they were way ahead
Merck & Co. profits US $ 749 Million
Glaxo profits US $ 1229 Million

THANK
YOU!!